European PPA Prices Dip in October, Except for Iberia; Germany Continues Hydrogen Support
Key Ideas
- European PPA prices decreased by 2% in October, except for a 1% increase in Iberia, with Great Britain experiencing the largest decline at over 6%.
- PPA volumes rose by 19% in October, totaling 1.23 GW across 29 deals, making it the fourth strongest month of the year.
- Germany signed its third PPA for green hydrogen production in October, supplying 575 GWh from hydropower to an international industrial gas producer, amidst continued sector support.
- Germany's commitment to hydrogen is evident through the approval of a 9,000 km hydrogen core network construction and the allocation of EUR 4.6bn to 23 national hydrogen projects.
In October, European power purchase agreement (PPA) prices saw a general decline of around 2%, except for Iberia which experienced a 1% increase, as reported by renewables advisory Pexapark. The average PPA price dropped to EUR 49.24/MWh, with Great Britain leading the decrease at over 6%. Despite this, PPA volumes increased by 19% compared to the previous month, totaling 1.23 GW across 29 deals. Notably, Germany secured its third PPA for green hydrogen production, with utility Uniper agreeing to supply 575 GWh from hydropower to an international industrial gas producer. Pexapark highlighted Germany's support for the hydrogen sector, mentioning the approval of a 9,000 km hydrogen core network construction and the allocation of EUR 4.6bn to 23 national hydrogen projects. This reflects a positive sentiment towards hydrogen initiatives in the region amidst challenges faced by other projects.